Technology – Segment Analysis
Liquid coating technology held the largest share in the functional coil coating market in 2019, owing to wide use of liquid coating in home appliances and construction & automotive industries. In addition, the powder coating segment is also growing at a faster rate during the forecast period. This is due to the fact that powder-coated metals are resistant to scratching & paint fading and provide much thicker coatings than conventional liquid coatings without running or sagging.
Material Type – Segment Analysis
Polyester segment held the largest share in the Functional Coil Coatings market in 2019, due to its wide usage as a final topcoat in the functional coil coatings cycle, owing to its low cost and easy application methods. In addition, it offers excellent corrosion and weather resistance to the coated material in most conditions. Therefore, owning to these factors polyester segment dominated the functional coil coated market. In addition, epoxy resins, polyvinylidene fluoride, and plastisol are also growing at a faster rate during the forecast period.
End Use – Segment Analysis
Appliance segment held the largest share in the functional coil coating market in 2019 and is growing at a CAGR of 5.6%. This is due to the increased expenditure power of consumers and improved living standards. Functional coil coated metals are useful for enhancing the design and aesthetics of home appliances. In addition, the use of these metals enables manufacturers to customize textures. Thus, in order to meet the changing consumer demand for home appliance design, manufacturers use functional coil coated metals, which is driving functional coil coated market growth.
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Geography – Segment Analysis
Asia Pacific held the largest share in the Functional Coil Coatings market in 2019, up to 28%, owning to growth in construction projects and rising automotive production in countries such as India, Malaysia and others. Due to their high-end aesthetics and long-lasting value, functional coil coatings are used in the building and construction industry, in ceiling grids, doors, roofing and siding, windows, and others. Construction projects and investments in Asia Pacific region is significantly increasing, which is driving functional coil coating market. For instance, in 2019, China government invested 1.9 billion on 13 public housing projects. In addition, in February 2020, the Asian Development Bank approved a loan of $631 million to develop the Vishakhapatnam-Chennai industrial corridor. Furthermore, construction projects such as ‘100 smart cities’ and ‘Housing for All by 2022’ in India are influencing functional coil coating market growth. In addition, according to OICA, automotive production in countries such as India, Indonesia, and Malaysia has increased by 8%, 10.3% and 12.2% up to 5,174,645, 1,343,714 and 402,085 from 2017. Therefore, the growth in automotive industry is also supporting functional coil market growth in the region.
Drivers – Functional Coil Coatings Market
- Growing demand for energy efficient structures
With an increasing number of building codes that promote energy-efficient structures, homebuilders and consumers are gradually moving towards strategies that deliver long-term performance and energy savings. In addition to aesthetic look, durability and functionality, functional coil coatings are known for their infrared-reflective pigment technology. This technology saves energy on cooling by helping to ease the interior temperature of the building. According to the US Department of Energy, heating and cooling costs account for 48 percent of energy use in typical US households. Therefore, as the use of functional coil coated metal can reduce the overall utility bills, while providing excellent resistance, superior longevity, infinite aesthetic color and texture options and environmental benefits, the demand for it is growing.
Challenges – Functional Coil Coatings Market
- High production cost of functional coil coatings
The major factor hindering the growth of this market is the high cost of the processes involved in the production of functional coil coatings. The manufacturing process of functional coil coating involves the coil coating line, which includes various cleaning, heating and coating tools and equipment. Higher maintenance costs for these machines increase the cost of the process and therefore, increases the cost of functional coil coatings. Therefore, owning to high cost of pre-coated metal, consumers may prefer home appliances that require fiber or plastic for fabrication. Thus restraining market growth.
Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Functional Coil Coatings Market. In 2019, the market of Functional Coil Coatings Market has been consolidated by the top five players accounting for xx% of the share. Major players in the Functional Coil Coatings market are KCC paints SDN BHD, KelCoatings Limited, Daikin industries, Ltd., Henkel AG & Co. KGaA, NIPSEA group, Valspar Corporation, Axalta Coating Systems (Axalta), Akzo Nobel N.V., and PPG Industries., among others.
Acquisitions/Technology Launches
- In March 2020, PPG industries acquired Alpha Coating Technologies, LLC a manufacturer of powder coatings for metal and light industrial applications.
- In October 2015, AkzoNobel opened new coil coating production plants in Garcia, Mexico.
- In June 2015, PPG Industries launched Duraform™ Next-Generation Polyester Coatings, ideal for coating appliances, building products, and transportation equipment.
Key Takeaways
- Asia-Pacific dominates the global functional coil coating market, owing to increased manufacturing & construction activities and various government initiatives such as 100 smart cities and Housing for all by 2022 in the region.
- Functional coil-coated metal is used widely in the furniture industry, due to its design flexibility and enhanced corrosion resistance. Increasing consumer disposable income and improving living standards fuels the demand for modern furniture, which, in turn, is expected to increase the need for functional coil-coated metals.
- However, growing demand for lightweight materials in the automobile industry is hindering functional coil coating market growth.
- Due to Covid 19 epidemic, automobile and component manufacturing plants are being shuttered around the world, and vehicle sales are dropping. This is impacting functional coil coating market growth. And it is expected that the outbreak of COVID-19 will be seen in the whole year of 2020, and a few months in 2021.
Related Reports :
1. Coil Coatings Market
2. Industrial Coatings Market
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